Winnipeg, Manitoba-based New Flyer Industries completed a new $225 million credit facility backing Harvest Partners and Lightyear Capital's acquisition of the company from KPS Special Situation Funds. In addition to the bank debt, there was also a $52 million mezzanine piece split between an institutional mezzanine piece, provided by Oaktree Capital Management's OCM Mezzanine Fund and affiliates of Citigroup Private Equity, while the Province of Manitoba provided the other part of the mezzanine, noted Collin Farmer, v.p. with Harvest.
The company was able to take on more senior debt and less mezzanine than planned as a result of strong markets and the company's performance, Farmer said. During syndication, the "B" loan was increased by $15 million to $160 million. "They were looking to cut down the mezz, so they upsized the term loan," a source said during syndication (LMW, 3/1). The bank facility also includes a $45 million revolver and $50 million letter of credit facility. Farmer declined comment on pricing, but sources said the facility carries a spread of LIBOR plus 23/4%.
Citibank and UBS were co-bookrunners and are joint leads on the deal. "Harvest has great relationships with both institutions," Farmer said. "They were able to take on this deal and provide us committed finance for it, and they took it to market and did a fantastic job executing it." New Flyer had an existing facility, led by Scotia Capital, which was refinanced along with the transaction. The purchase price and size of the equity contribution were not disclosed. New Flyer is a manufacturer of heavy-duty transit buses.